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Intel's chipset screwup forces Samsung to offer refunds

A victim of circumstance
Tue Feb 01 2011, 10:17

KOREAN HARDWARE MAKER Samsung will offer refunds or exchanges on its PCs built with Intel's faulty chipset inside.

Yesterday, Intel admitted that it had shipped faulty Intel 6 series Cougar Point support chips. These were used in chipsets found in PCs built by manufacturers like Samsung, so product recalls tipped up on the cards.

Samsung said it will refund or exchange PCs that are part of six lines in Korea and one in the US. It's not going to take too much of a financial hit as Intel will fund the payments, the Wall Street Journal reported.

Intel admitted late yesterday that replacing the faulty Sandy Bridge chipsets and resolving the problem will cost it at least $700 million, since it had already shipped about 100,000 chipsets. Production of the Sandy Bridge chipsets is expected to get back to normal some time in April.

The near billion dollar write-off isn't very good for Intel. As well as the cost, it will cause problems for other manufacturers, which will have to delay releasing PCs at a particularly tricky time for the industry.

But you have to admire Intel for making the issue public and quickly recalling the chipsets. And due to Chipzilla's strength in the market and considerable revenue stream, it should weather this glitch. µ


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